Moody's cuts Guadalajara to Ba2/A2.mx

Moody's de Mexico said it downgraded the issuer ratings of the municipality of Guadalajara to Ba2 from Ba1 on the global scale, local currency and to A2.mx from A1.mx on the Mexico national scale.

The outlook remains negative.

Moody's said the Ba2/A2.mx ratings reflect the deterioration of Guadalajara's gross operating balances and the recording of cash financing requirements, which have led to high debt levels and a negative liquidity position. According to 2012 results, expenditure growth continues to outpace revenue growth.

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